ROI Calculator
What is your return on investment based on your costs and returns? Enter your acquisition costs, expenses, and returns below to determine your exact net gain or loss and percentage yield.
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Computed Results
Calculation Transparency: Standard ROI
ROI = ((Final Value - Total Cost) / Total Cost) × 100- Values represent straightforward mathematical calculations based exclusively on the parameters entered above.
- Excludes individual income tax, capital gains taxes, transaction slippage, and local filing requirements unless entered in fees.
- Does not adjust for purchasing-power erosion (inflation) or risk-adjusted hurdle rates.
Comprehensive Guide to the ROI Formula & Applications
1. Understanding the Core Formula
The basic Return on Investment ratio evaluates capital efficiency by comparing net financial gain against total capital deployed:
For instance, an initial outlay of $5,000 that matures to $6,500 produces a net profit of $1,500. Dividing $1,500 by $5,000 yields 0.30, or a 30% ROI.
2. Comparing ROI Across Time Horizons
A common limitation of standard ROI is that it ignores investment duration. Earning 30% over 6 months represents phenomenal annual compounding, whereas earning 30% over 10 years translates into less than 2.7% per year.
If your investment spanned multiple years or exact date ranges, use our Annualized ROI Calculator to compute the compounded annual growth rate (CAGR).